A retailed buys 30 pens from a wholesaler and pays equal to marked price of 27 pens. If he sells the pens at the marked price, his profit percent in the transaction is:
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9 1/11%
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9 1/10%
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11 1/11%
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11 1/9%
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none
To solve this question, the user needs to understand the concept of profit percent, cost price and selling price.
Let M be the marked price of each pen
The cost price of 30 pens is equal to the cost price of 27 pens, since the retailer pays equal to the marked price of 27 pens. Therefore, the cost price of each pen is $\frac{M}{30}\times27 = \frac{9M}{10}$.
When the retailer sells each pen at the marked price M, the selling price of each pen is M.
So the profit for each pen is $M - \frac{9M}{10} = \frac{M}{10}$.
Therefore, the profit percent is $\frac{\text{Profit}}{\text{Cost Price}}\times100 = \frac{\frac{M}{10}}{\frac{9M}{10}}\times100 = \frac{1}{9}\times100 = 11\frac{1}{9}\%$.
Therefore, the answer is:
The Answer is: D. 11 1/9%
The retailer's cost equals the marked price of 27 pens, but he sells all 30 pens at marked price, so his revenue equals the marked price of 30 pens. His profit is the marked price of 3 pens (30−27) out of a cost of 27 pens, giving a profit percentage of (3/27)×100 = 100/9 = 11 1/9%. This is a classic 'quantity discount' profit problem where profit is measured against cost, not revenue.